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Trintech Buys Exceptis Technologies for US $26 Million

[London, ENGLAND] Trintech Group, the international provider of electronic payment infrastructure solutions, announced Wednesday the acquisition of Exceptis Technologies for around US $26 million.

Exceptis Technologies, which like Trintech is headquartered in Dublin, Ireland, provides what are known as "exception management solutions" to the card payments industry. Its solutions deal with such issues as automated payment card dispute resolution and fraud and risk management for card issuers.

Cyril McGuire, executive chairman of Trintech, said the acquisition is consistent with Trintech's growth strategy of gaining new customers, broadening its product suite and generating increased market share on a global basis.

"With e-commerce revenues expected to reach US $1.2 trillion by 2002, increased card usage on the Internet and dispute ratios approaching 50 percent for Internet originated transactions, Trintech is now positioned, through this acquisition, to provide its growing customer base with a cost effective leading edge solution to respond to this challenge," said McGuire.

Founded in 1992 as Peregrine Systems, Exceptis Technologies employs over 60 skilled personnel and has become an established player in the automated dispute resolution and fraud management market. It has a customer base of over 50 financial institutions worldwide, including such major customers as Barclaycard, Telekurs, eFunds, Bank of Ireland, and Skandinavinska Enskilda Banken (SEB).

Brian Caulfield, chief technical officer and co-founder of Exceptis, said that joining forces with Trintech will give the company access to Trintech's significant capital resources and distribution reach, allowing it to more fully exploit an emerging global opportunity.

To pay for the acquisition, Trintech will be issuing ordinary shares equivalent to 1.8 million American depositary shares. In addition there will be a two-year performance earn-out of approximately US $10 million, again paid as newly issued ordinary shares.

Trintech has also recently acquired Globeset, Sursoft and Checkline -- an indication of its aggressive growth in the e-payments market. Chief Financial Officer Paul Byrne said the company was consolidating the e-payment industry with the aim of becoming its dominant player.

Trintech's U.S. base (essentially its "co-headquarters") is in San Mateo, California.